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Shining points in the picture of Quang Ngai’s economy

​The picture of Quang Ngai’s socio-economy has been shining when this central province successfully achieved targeted figures in the first six months of the year.

​The most significant achievement is that GDP increased by 13.6 percent in the period, accounting for over 5.5 trillion VND, fulfilling 51 percent of the plan set forth for the year.

The value of industrial processing is estimated at 11.3 trillion VND, a growth of 23 percent compared with that in the last period, reaching 57.4 percent of the plan.

In the period, this central province reached a remarkable result in foreign directed investment (FDI) with three new licensed projects worth around 16.54 million USD. The province has considered for granting investment certification to a 150-million USD pulp-making project invested by JK (India).

So far, Quang Ngai has lured 25 FDI projects with total registered capital of 3.9 billion USD, which have been under smooth and effective operations. The six-month disbursement of those projects hit a record of 26.12 million USD.

Besides the attraction of FDI, the domestic projects increased double compared with that in the same period last year. 12 newly-licensed projects on year bring the total domestic projects in the province up to 260 with total investment capital of over 109 trillion VND.

The activities of agro-forest-fishery also obtained considerable results. Its processing value made a record of 1.3 trillion VND, a y-o-y growth of 4.5 percent.

Of which, the processing in fishery is said to be the most successful because in the period many provincial fishermen invested money in improving the capacity of fishing boats and equipping with hi-tech fishing tools. So that the six-month catching yield is reported to be over 65.3 trillion tons, a raise of 10 percent compared with that in last period.

One more significant point in the shining picture of economy in Quang Ngai province is tax collection, which increased 30 percent compared to the figures last period. So far the year, total revenue of taxes in the province made up over 12 trillion VND, of which an amount of 10.7 trillion VND was collected from domestic taxes, a considerable rise of 42.7 percent compared with that in the same period last year.

According to experts, the noteworthy achievement in tax collection thanked to the large contribution of Dung Quat Refinery, which paid an amount of nearly 10 trillion VND taxes within five months on year.

The final point is that tourism has also become a driving force in economic growth. In the period many large scale festivals were held attracting over 252 thousands of tourists to Quang Ngai, a y-o-y increase of 15 percent, of which 40 percent were foreign visitors.

ExxonMobil Corporation from the US is completing the geological survey and build the design of the pipeline installation, aiming to conduct the construction of the onshore infrastructure of the Blue Whale (Ca Voi Xanh) gas-to-power complex located in the central provinces of Quang Nam and Quang Ngai.
ExxonMobil seems eager to start project implementation
At a working session with leaders of the Management Board of Dung Quat Economic Zone, the representative of ExxonMobil confirmed that the corporation is preparing the necessary conditions to implement the construction. At present, the corporation has carried out the land survey and took soil samples to conduct the environmental impact report.
The investor urged relevant authorities to complete other procedures so that it can implement the project soon.
The exact amount of investment capital has not been released, but initial information suggested that the gas-to-power complex could carry a price tag of $20 billion. However, Vietnam's state-run oil and gas group PetroVietnam, the co-investors of the project, referred to $10 billion.
ExxonMobil and PetroVietnam signed a memorandum of understanding for the project in 2013. The project is believed to have high feasibility thanks to the good reputation of the investor and the readiness of the local authorities.
According to the plan, the construction will be implemented in the two provinces of Quang Nam and Quang Ngai. Notably, the landfall location of the gas pipeline stemming from Blue Whale gas…... [read more]

Vietnam’s sole oil refinery operator, Binh Son Refining (BSR), plans to sell 4 per cent of its shares in an initial public offering (IPO) on November 7 and another 49 per cent to strategic investors next year, its Chairman said on August 10. BSR, which runs the Dung Quat Oil Refinery in central Quang Ngai province, will offer shares at VND14,600 ($0.64) at its November IPO, Chairman Nguyen Hoai Giang said. It expects to raise VND1.9 trillion ($83.6 million) from the sale, which would value the entire company at around $2.1 billion. Details of its listing are yet to be made public. The IPO is part of Vietnam’s wider drive to equitize State-owned enterprises to boost performance. The tardy process has gained more momentum since the new government took office last year. BSR also plans to sell an additional 49 per cent stake to one or more strategic investors next year. Spain’s Repsol S.A. and the Vietnam National Petroleum Corp. (Petrolimex) are among those that have expressed interest in BSR’s strategic sale, Mr. Giang said. Interest from Petrolimex Petrolimex and BSR signed an agreement on August 10 whereby the former will prioritize buying Dung Quat’s oil products, liquid petroleum gas, and petrochemical products, and export refined products to Laos and Cambodia, the two companies announced in a joint statement. Of the 29 domestic companies licensed as wholesale distributors in Vietnam, Petrolimex has about half of the retail market share, followed by the PetroVietnam Oil Corp. (PV Oil) with 22 per…... [read more]

Binh Son Refinery and Petrochemical Co Ltd sign an agreement with Petrolimex on cooperation in boosting sales of petrol products produced by the Dung Quat Refinery. — VNS Photo
Binh Son Refinery and Petrochemical Co Ltd (BSR) on Thursday signed an agreement with the Vietnam National Petroleum Group (Petrolimex) on cooperation in boosting sales of petrol products produced by the Dung Quat Refinery.
This is an important collaboration between BSR, which operates the Dung Quat Refinery with an annual capacity of 6.5 million tonnes of petroleum products, and Petrolimex, the petrol retailer covering two-thirds of Viet Nam’s market share.
Under the deal, Petrolimex will give top priority to the sale of petrol, liquefied petroleum gas and other petrochemical products produced by the Dung Quat Refinery, including exporting Dung Quat’s products to Laos and Cambodia.
The two sides will also consider possibilities of cooperation in the fields of insurance and transport.
In particular, Petrolimex and BRS expressed their wish to become each other’s strategic shareholders. Accordingly, Petrolimex will purchase BSR’s shares after the latter completes the initial public offering (IPO), scheduled by the end of this year.
After over seven years of operation, BSR has produced and sold more than 47.2 million tonnes of products, meeting 40 per cent of the domestic petrol demand.
The company’s total revenue hit over US$36 billion and contributed over $7 billion to the State’s coffer, more than double the investment in the refinery. – VNS
…... [read more]

Vietnam National Petroleum Group (Petrolimex) plans to buy the entire stake Binh Son Refinery and Petrochemical Co., Ltd. (BSR) - the operator of Vietnam's first oil refinery Dung Quat will put on sale at its initial public offering (IPO) to become a strategic partner of the refinery.
Dung Quat Refinery signs transfer deal with Petrolimex
It was announced by Petrolimex chairman Bui Ngoc Bao at the signing ceremony of a co-operation agreement between Petrolimex and BSR on August 10. However, the specific stakes to be sold at the IPO have yet to be disclosed.
According to the deal, Petrolimex will buy BSR’s shares after it conducts the equitisation and completes its IPO. Besides, Petrolimex confirms giving top priority to the sales of petrol, LPG, and other petrochemical products of Dung Quat Refinery.
Bao stated that Petrolimex plans to put up 20 per cent of its stakes for sale to mobilise capital for the BSR acquisition.
When asked about BSR’s preparations for its IPO, Tran Ngoc Nguyen, general director of BSR, said that the IPO is expected to take place in the fourth quarter of this year.
The company’s stock offering will be divided into two steps. In particular, at the end of 2017, BSR will sell its stocks to its staff and conduct its IPO. Next, BSR will sell stakes to strategic shareholders within 12 months of its IPO.
“As BSR…... [read more]

NDO/VNA – The Vietnam National Petroleum Group (Petrolimex) signed an agreement with the Binh Son Refinery and Petrochemical Co Ltd (BSR), on August 10, to cooperate in boosting sales of petroleum products produced by the Dung Quat Refinery. In the deal, Petrolimex and BSR noted their wish to become each other’s strategic shareholders through Petrolimex’s purchase of BSR shares, after BSR conducts equitisation and completes their Initial Public Offering (IPO).
Petrolimex will give top priority to the sales of petrol, LPG and other petrochemical products made by the Dung Quat refinery, which is operated by BSR.
The two sides will collaborate to export Dung Quat’s products to Laos and Cambodia.
They will also consider the possibilities of cooperation in the fields of insurance and transport.
Addressing the signing ceremony, BSR Director General Tran Ngoc Nguyen said that the company aims to make their IPO at the end of this year.
In the 7 years that the company has been in operation, BSR has produced and sold more than 47.2 million tonnes of products, meeting 40 percent of the domestic petrol demand. The company grossed total revenues of over US$36 billion and paid over US$7 billion to the State coffer, more than double of the investment in the refinery.
Meanwhile, Petrolimex holds the largest share of the domestic petrol market.... [read more]

The operator of Vietnam's only oil refinery is planning to sell a 4 percent stake this November, and expects to raise nearly VND1.93 trillion ($84.8 million) from the offering, Bloomberg reported. Nguyen Hoai Giang, chairman of the Binh Son Refining and Petrochemical Company, said in a Thursday report that it is waiting for government approval to sell 132 million shares for VND14,600 each on November 7. Another 49 percent stake in the Dung Quat Refinery will go on sale next year, he said. Dozens of companies have shown interest in the share sale, including Spain's Repsol SA, World Petroleum Corporation in the U.S. and Vietnam’s state-owned fuel giant Petrolimex. “The sale is open to both local and international investors, but we will give priority to partners that operate in the same industry and can help us to become bigger and more efficient,” he said, as cited by Bloomberg. Binh Son was valued at VND72.88 trillion ($3.2 billion) at the end of 2015, with the state holding a 60 percent stake, according to a trade ministry report released more than two months ago. The company has projected revenue this year to reach VND62.4 trillion, down 17 percent from 2016 due to an expected drop in crude oil prices and maintenance work. Its refinery in the central province of Quang Ngai meets around a third of Vietnam’s demand for fuel and oil products, and has the capacity to process 6.5 million tons of crude oil a year. The company is planning to…... [read more]

The signing ceremony (Source: VNA)
Hanoi (VNA) – The Vietnam National Petroleum Group
(Petrolimex) signed an agreement with the Binh Son Refinery and Petrochemical
Co Ltd (BSR) on August 10 on cooperation in boosting sales of petrol products
produced by Dung Quat Refinery.
In the deal, Petrolimex and BSR noted their wish to become each other’s
strategic shareholders through Petrolimex’s purchase of BSR shares after BSR
conducts equitisation and completes the Initial Public Offering (IPO).
Petrolimex will give top priority to the sales of petrol, LPG and other
petrochemical products made by Dung Quat refinery, which is operated by BSR.
The two sides will collaborate to export Dung Quat’s products to Laos
and Cambodia.
They will also consider possibilities of cooperation in the fields of
insurance and transport.
Addressing the signing ceremony, BSR Director General Tran Ngoc Nguyen
said the company aims to make the IPO at the end of this year.
During more than 7 years in operation, BSR has produced and sold more
than 47.2 million tonnes of products, meeting 40 percent of the domestic petrol
demand. The company grossed total revenues of over 36 billion USD and paid over
7 billion USD to the State coffer, more than double the investment in the
refinery.
Meanwhile, Petrolimex is holding the largest share of the domestic
petrol market.-VNA... [read more]

While most cars in Vietnam are running on Euro 2 standard fuel, a new law effective January 1 mandates that all new automobiles in Vietnam, both imported and domestically assembled, must use petrol meeting the Euro 4 standard.
Another mandatory upgrade, from Euro 2 to Euro 3, was also approved for motorbikes with the same deadline.
Currently applied in several countries, the Euro emission standards, set by the European Union, stipulate average emission targets for toxic substances like carbon monoxide (CO) or carbon dioxide (CO2).
The Euro 2, introduced in 1997, set the CO emission target at 4g/kWh, and the later Euro 4, effective in 2011, lowered that to 1.5g/kWh.
A petrol product must have a lead content of no more than 0.005 grams per liter to meet the Euro 4 standard, compared to 0.013 g/l of the Euro 2.
Drivers told Tuoi Tre (Youth) newspaper that while they want to follow the law, it is not easy to find Euro 4 petrol, even in Hanoi and Ho Chi Minh City.
Duc Thuan, one Hanoi resident, has recently purchased a new car using the Euro 4 standard. However, “it is a tough job finding a filling station with the Euro 4 petrol,” he told Tuoi Tre.
Petrolimex, Vietnam’s largest fuel wholesaler, is the only supplier of the higher grade petrol, but not all Petrolimex stations have this kind of fuel, Thuan added.
“So I sometimes have to resort to using Euro 2 petrol,” he…... [read more]

The first commercial oil produced by the refinery located in the central province of Quang Ngai is the result of a huge effort being made over the past 15 years. Vietnam now has its own large, modern complex for refining oil to produce petroleum products for domestic consumption. As a result, the cutting-edge petrochemical industry is expected to boost the development of other sectors and support industries, helping to establish an industrial complex that underlines national industrialization and modernization. Quang Ngai, though heavily affected by the past war and constantly hit by natural calamities, is on the way to becoming the region’s economic powerhouse. In addition to making an effective use of the country’s oil, the refinery will provide tens of thousands of jobs for local people and stimulate the establishment of new urban areas which in turn will create a higher demand for services and promote sustainable socio-economic development in the long run. In the current economic downturn, the effective operation of such a large-scale industrial complex will encourage both domestic and foreign investors to go ahead with other projects. Quang Ngai had only 52 projects with a total capital of VND32 trillion in the 2001-2005 period, but the figure rose to 157 projects worth US$10.3 billion in 2008. The successful operation of the Dung Quat oil refinery has opened new prospects for the construction of similar projects as it can provide the country with a core group of experienced petrochemical technicians and scientists. A number of other refineries…... [read more]

In his opening speech, NA Chairman Nguyen Phu Trong said the eighth NA session is taking place after the celebrations of Hanoi’s millennium- a significant event which has raised national pride and encouraged the Party and people to gain new achievements in national construction and defence. This year, Vietnam has faced a lot of difficulties and challenges caused by the global economic downturn, natural disasters and epidemics. However, under the correct leadership of the Party and the Government, socio-economic targets have been reached, with an estimated economic growth rate of 6.7 percent for this year. Industrial production and export turnover have posted high growth rates while State revenues are expected to be higher than estimated and inflation is control. Improved social welfare, social security have helped to improve people’s living standards significantly. Remarkable progress has been seen in administrative reform, and preventing corruption. The successful holding of the ASEAN Summit, the 31st General Assembly of the ASEAN Inter-Parliamentary Assembly (AIPA) has elevated Vietnam’s status in the international arena. The achievements recorded in 2010 are fresh impetus for carrying out resolutions adopted at the 10th National Party Congress and the five-year plan for socio-ecocnomic development (2006-2010) under the NA’s resolution, which will give fresh impetus to socio-economic tasks in the following years. Mr Trong pointed out the limitations and weaknesses in socio-economic development that have not yet been resolved, namely a slow economic restructuring, poor infrastructure, ineffective investment, a high trade deficit and a State budget overspend and soaring prices, which…... [read more]